very cool. that's all the "money" we have for you today. thank you for joining us. we hope you will come back tomorrow. zito was coming up next. gerri: hello. they may work for the government , but they are being treated like celebrities. that is right. fresh air raids over government workers who are getting special benefits during the storms. the nor'easter that followed this last night. adding insult to injury to the thousands of residents of new york's long island living. ahead of your state emergency minutes apart when the head of the diverted personnel to his personal use at a time when workers were in high demand , you just saw his picture, directing county workers to his house to jump up and remove a tree that

had fallen across is dravite. he was an even living there at the time. fired after it came to light, but does not all. special health benefits for workers during the crisis. the federal office of personnel management line workers and retirees to get to a emergency rooms for caring a crisis. it's all covered by you, the taxpayer. additional supplies of medicine also on offer. did your employer do that for you? gabba workers getting special treatment while thousands of new yorkers in their living rooms with no heat and no light. they already have better paying jobs and job security. now government workers even have better storm relief. that's right. meanwhile, concerns are growing for many ceos across the country, the result of tuesday's presidential election will now play a big role of roy then decide to hire again. round table of business incentives to tell us what to

make of the election and one of their biggest concerns, the living fiscal cliff. chief executives of cke restaurants. bill miller is the senior vice president of business roundtable. welcome to you both. i am going to start with you. we talked to you before about this issue of the cliff, the change in the white house. a lot of ceos out there tell me, we don't know what is happening. that is why we are reluctant to hire. in answer to one question. today we know who is president for the next four years. will you hire? >> good to be back. and we will continue to hire. i think that the weight at which ceos are going to hire depends not on ideology are, you know, which party is the president's power but where they believe their revenues are going to go and what they believe their expenses will beat. you look over five years, so if you think revenues of go up, gdp would get better, but i will come down. you're more inclined to invest and hire. if you dig energy costs will go

up and, the less inclined. health care cost. gerri: i get that. pedal to the medal here. the president is committed to obamacare until this last time we saw you at that was something that had you not spending. what are your plans for the next quarter, the next two quarters? will you expand, when you grow? >> first of all, our franchisees' generally handle growth. i no franchisees' are reluctant to grow because of obamacare, because of the added labor expense, a lot of people, as i said last time, our company and franchisees', every major company is taking their full-time labor forces. to the extent they can't converting and a part-time to try to reduce the expense. businesses have been overcome obstacles the government puts in our path as the 1930's, and i think people you obamacare much in that light in the doing everything we can to get costs down, but this is a difficult fight. whether we are going to be a

will to do their not, we will have to wait and see. gerri: all right. well, to you. you run the business roundtable. you're group represents ceos of companies that have over 7 trillion in market cap or revenues. >> that's right. gerri: if there were a ceo water cooler, which there is not, but you know what i mean, would they be saying about the expectations for the economy in what they plan to do over the next quarter, two quarters. >> it is an interesting point, and certainly one in following what andy said, ceos take a longer-term view of business cycles. one of the things that we do at the business roundtable is survey them every quarter, and resurvey them on three importance components. what did they do, they're likely head of sales, increase, decrease cost data same. are they going to employ more people, less people, the same.

what did they believe their sales and capital expenditure will be. the last quarterly survey that we did which was back in september was one of the highest in terms of the level of uncertainty, the level of uncertainty was very worrisome. gerri: finally, that's my question. so many ceos have written letters, formed organizations. they have been in newspapers begging, really, for some kind of attention to the economy, to grow jobs, to reduce costs and regulation. now we find out, now we know that barack obama will be president for another four years. are they encouraged her discouraged? let's face it. a lot of ceos said to me if we don't get better news from the white house, were not expanding. we are -- what are they saying? >> what they're saying is the election season is over. we have to deal with the individuals who are leading our country. those leaders have been failing

the american business community in more and partly the american economy for at least the last year. if we think about august of 2011, the debt crisis, moving into the fiscal clef fact, i would say that the comments from speaker bear, the comments from leader reid, and the comments from the president with regard to moving forward in a more solution-oriented, not a campaign time was a very encouraging thing. we think that is the posture of many. gerri: we reported on that last night. some people are definitely encouraged. and now you have been a critic. the speaker of the house, obamacare is a lot of the land, but it is raising costs and threatening jobs. our goal has been and will remain full repeal. >> really, i did an article in human events that came out today

asking the president to work with us on obamacare and want to address the issue of certainty. if you have-70 people are not going to grow. i agree with what he said, but if you know taxes will go up to me business models will reflect that. same with obamacare. you're certain they will go up. that is not a good thing. with respect to obamacare, look, the president was reelected. he will not repealed, but certainly we should take a look at it and try and fix the things that are actually earning gross, hurting job creation, hurting the economy. we know is there. people want to fix the economy. we're looking at the disco clef. we need to get together and try to solve some of these problems, this time in a bipartisan way because the republicans have the house. we ccnnot continue on the path we have been on. alyeska president right now, please, please, please sit down and try and solve these

problems. the american business community cannot afford obamacare. we like it. i understand what you wanted to do. it just isn't going to work. want to help you and create jobs. we want to succeed everyone you to succeed, but it will not happen on this past. gerri: a personal appeal to the president right there. very articulately done. i want to turn to you. the fiscal cliff. the cbs sakes tending all expired tax cuts would boost gdp by one-half percentage seems like a good goal to meet. what does your organization send this? >> i think that what you saw back in august when the ceo looked at the expiration we would have almost -- we will almost certainly move back into recession and actually a contraction of potentially for over 1 percent, so it is a very, very important deadline that, while most of the people in america were focused on tuesday, the real day that is most

important to people that are running companies around the country is december 301st and making sure that we have heard this unbelievably important moment. gerri: a pleasure having both of you want. it is going to be interesting to see how this plays out and we will have you back to talk more. thank you for helping as. >> pleasure to be here. >> thank you so much. gerri: to want to know what you think. here is our question. the fiscal clef. , the day, drive right over, pedal to the metal. log on to gerriwillis.com, but on the right hand side of the screen and ellis said results at the end of the show. we have more coming up in the hour, including what is next for the republican party after losing the white house this week. did they need to make changes are go full speed ahead? we will ask our political panel. in next, a tale of two maps. i was show you the numbers i believe a behind the reelection and why it is a dangerous path to be on for america. don't go away.

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gerri: justin, president barack obama will make his first post-election comments on the economy tomorrow specifically addressing keeping the economy growing and how to reduce the deficit. his lans for those two major issues. they will happen tomorrow. we will cover it live. all the details right here. well, i want to talk about something a little bit different. if you want to understand what happened tuesday in what president barack obama was reelected, i have some maps of want to show you. first, voters. red represents romney, blue represents the president. as you might expect, it is a big concentration of population. if you look along the coast here, the northeast, up in

detroit your, the west coast, california, uc president's support. the red, of course, is romney support. take a look at the map of the unemployed. there are some similarities. lots of unemployed in mature areas and centers. california, concentrations of unemployed and also here on the east coast and down into florida. here is what is interesting. republicans made the assumption incorrectly, as it turns out, the voters in states with high unemployment would kick the bums out. obama out of office to try to find somebody who would solve the jobs problem in this country it turns out the opposite happened. take a look at this map. can we go back? thank you. so, if you let one map over the other, they are the same essentially command it is surprising because essentially the republicans that the people would come as i said to of both the bonds out and it did not happen that way. the reason, if you think about

it, obvious, the federal government is paying the jobless, extending them unemployed benefits, food stamps, even underwriting disability payments from social security. think we're different from the europeans? think again. the proportion of greek men and attorneys working inside the book or some in the u.s. working that is what this election was about. people voting for free money, free benefits, health care in every pot. but it is not just the people who lost jobs in the recession who are hooked on government money. the total number of people getting government money is rising. in fact, most of what you suspect about entitlements may be wrong. if he think the proportion of people getting government benefits has been stable, think again. in 1983, less than 30 percent of us get government help. today 49 percent. if you think democrats a lot our's loss of four and seven the spending, no, and the last half century in thailand spending has grown faster under republican presidents and democratic plans.

and if you think transfers are a small part of the government budget, wrong, wrong, wrong. take a look at this. less than one-third of the budget. today it is two-thirds of federal spending. that leaves just $1 out of everything the -- out of three, that is, for other things like defense spending. here is where we are. nearly 200 years after francis scott key panned the national anthem and demoralize the phrase land of a freak would become just that, but not in the way he expected. because an increasing number of us are getting a free ride, and that to my friends to my is not the american way. that's what i think. you want to know what you think. job me in e-mail. >> coming up, the gop soul-searching begins after obama's sweeping win, but can republicans make a comeback? our political panel did some of what is next for the party. and should the gop get back to

there libertarian reads like what this man did? congressman ron paul's shares the real story on why he thinks from the lost. also, our bonds better than stocks right now? and where should you park your money? what's best for your investment later. we are on the case next on "the willis report."

gerri: republicans playing the blame game four romney losing. what is next? the political panel.

gerri: now : the finger-pointing begins. the gop is passing around the blame on why mitt romney lost to a president who was overseeing a sluggish economy and unemployment hovering around 8%. the elephant in the room, the feature for the republican

party. let's past daily beast columnist and fox news ginger reader and blackmun, former adviser to president george w. bush. i want to start with you. a lot of finger-pointing. as a matter of fact, lindsay gramm had an interesting quote, if i hear anyone say it was because he was not conservative enough, i'm going to go nuts. we're not losing 95 percent of the african-americans in two-thirds of hispanic voters because we're not being hard right enough. but he says that? >> i think it is exactly right, and this is what always happens when they're is a loss in both parties. the base comes around and says, see, this is proof that if we had somebody who was more conservative, more liberal, then we would do better. and one group that lindsay gramm did not mention was also women. i think that the republican party has a problem with a variety of groups that are demographically very, very important. you know, the biggest one would

be latinos. if they don't figure out 08 how to attract and when the light has again. gerri: is this mitt romney's fault? is the republican party not broad enough in its appeal? >> here is the seeker why we did not win. would you like to hear it? gerri: i bet you say not enough voters. >> you got it. it's as simple as that. having said that, we don't have a problem. we have a challenge. john said we did not seize upon in past election cycles, and as he said, it is clear. we have a problem attracting women, single women, a problem with african-americans, as banks, a problem with use, and yet people. will we need to do is we have to stop asking for their vote women needed and include them, not only within our party is active members and voters, but also give the opera to the run for office. we have a lot of groundwork. we saw a lack of enthusiasm, not only in a battleground states,

but in many places that with oarlocks. we need a lesson to be learned by this. gerri: to you. i talked to a republican operative . one of the problems, on the campaign trail reporters who are largely women on the campaign trail were talking to people in and around the campaign romains. >> there is definitely media bias. definitely it affects things, but the truth of the matter is this campaign was about much bigger things than that, and the reason that women tend to vote democratic in much stronger ways than they used to is because the republican party has become so hostile to the government. it has gone beyond just the idea of smaller government, which actually most americans support.

it is demonized government. unmarried women, which, you know, brad is brought up, are dependent on the government or they know they may be dependent. they don't have anybody to share the burden with them, and if they lose their job in a precarious economy like this their children don't eat which is a serious thing. >> george first said it best. passionate conservatism. you make a valid point. government should only give the people what they cannot do for themselves. the government needs to do it well. that should be our mantra, and if it was and we work inclusive in getting that kind of respect the government deserves, i think we would attract these voters. gerri: one other idea. allow the people particularly on the left think their is a big bad republican party and these guys get together with cigars and some room somewhere. the reality is when you get up

close you know, that was really it. there is no there there. what happened is you saw a lot of fighting the last year with other republican candid it's. it is no surprise that at the end of the day it was difficult to conduct a campaign that really made sense. >> as you point out in the primaries, we have a short general election cycle. the president did not have a challenger. so the president got a huge pass, but at the end of the day we could have won this election. no doubt in my mind. a lot of the plan does not lie with the candid it, it lies with the party did not keep up with the kind of demographics we should be not only attracting, but people that we should give opportunity to. gerri: we have to leave it there. thank you for helping us out. great conversation.

appreciated. all right. a little over one week after sandy head the east coast and in the area was pummeled with the hughes nor'easter that brought gusty wind to our rain, and snow. some parts hit hardest like s.i., new york, got around 6 inches. other parts of more than a foot. the worst part, around 200,000 people who had just done there power back on after a week without it are now once again in the dark. unbelievable. all told, three-quarters of a million people, mostly in new york and new jersey without power. in ten days after sandy, drivers in new york and new jersey are spending hours in line waiting for a drop of gas. the governors say help is on the lake, but right now frustration is the only thing to be found in some stations. 75 percent of gas stations in new york city are empty. as a result the york city mayor michael bloomberg and officials have decided to start rationing gas, rationing gas in new york city. this is unbelievable.

we are 11 days after sandy. i cannot believe this is still going on. stay with us.

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400 stores, where queen mattresses start at just $699. >> tensions between the u.s. and iran escalating today. they fly in international airspace. bolts shots missed the joke. the incident happened on november 1. the pentagon only broke the news today. colonel, it happened before the election, but we are only hearing about it after. you think the government kept it quiet before the election? >> there is no doubt that they kept it quiet.

it shows you how subservient they have become. how politically conservative subservient they are. they try to cover up things and live. this is an administration that has tried to cover up pearl harbor. gerri: i don't know about that, but it is concerning. you have to wonder what is going on. do you consider the an act of war? >> legally, it is an act of war. if it happened in international airspace, when you fire and a country buyers and inner nerd content international airspace on resort center, was in a

response the? we should set up an error ambush, which means that they come out after one of our drones, our pilots are vastly superior. our intelligence is superior. if they fire on the u.s. is mcgann, the pilots should get a chance to show how well they can swim. gerri: i want you to talk about this post that the iranian government for now. they say that relations cannot be possible overnight and americans should not think they can hold us to ransom by coming to the negotiating table. when you make of that? >> well, that is how iranian slur. gerri: what do you mean by fleur. that's not alerting? >> they know negotiations are common. they won the negotiations to come because i want they want to buy more time for the nuclear program. they always come out strong they

say we really want to talk, we really should negotiate. but the danger here is that the iranians -- they have some understanding of our system. they certainly follow politics. but they really don't understand our psychology. neither do we really understand there is. iranian pragmatism is very different than american pragmatism. the real danger is miscalculation. gerri: when you say makes calculation, that raises an interesting question. a lot of people worried that a military strike is inevitable whether by us or the israelis or by iranian people. he believed that? >> the only thing that is inevitable is that we will have a bigger deficit in four years

on fox news ratings will be higher. but there is a great danger. i will not be flippant about this. there is a great danger of real war in the persian gulf with no winters and a lot of losers. it would certainly include iran's neighbors and the global economy. you know, i love green energy, but we still run on oil. and the oil comes from the gulf. gerri: you know, that's not the only reason i think we are interested in that region. i want to bring up the fact on the story that i think a lot of people have missed. that is the fact that these jets were russian-made. they fired on our drones. i wanted to play some sounds from president. i know you are familiar with it. >> after my election -- [inaudible] gerri: that was the president

telling the russians that he would have more flexibility after the election. he sure is that now. herby harvesting obama's foreign policy initiatives? not a good way here, but what you make of this foreign policy, and is not part of the problem here? >> oh, it certainly is. he certainly has an integrative coherent strategic policy. the administration has had a succession of impulses from do-gooder impulses to hostility to other impulses. by the way, israel is utterly screwed after this election. but the danger is that he has -- without even realizing it, he is so imbued with the left-wing ideology that he views the world as very much askew. gerri: it raises the question -- sorry to interrupt you. >> that's okay. it's your show, gerri.

gerri: it makes me wonder whether some countries, particularly countries that don't like us, see an opening here. >> certainly. there is no enemy of the united states that wanted obama to lose the election. one of the reasons that you saudi arabians fire that drones because they do perceive the u.s. as in retreat is militarily weekend. they certainly perceive president obama as very weak. vladimir putin sees them as passive and he talked about the russian-made weapons going to iran. russian-made weapons have continued to go to iran. russian advisers are in the wrong. now, that is an expression. nonetheless, russia and china continue to back iran. if we get into a shooting war, russians will try to kill americans. gerri: a lot to think about

tonight. lieutenant, thank you for coming on and explaining us. we appreciate your time. >> thank you, gerri. gerri: coming up, the rising popularity of corporate bonds and in look at the nation's housing market under four more years of president obama

gerri: the president is facing another four years. at the center of the issues he will deal with, the country's housing problem. some 10 million homeowners remain underwater, owing more than what their homes are worth great struggling to refinance their debt. what does another four years mean for these americans? jed, welcome back to the show. one interesting thing he said in the interview is that the issue was not talked about in the debate. tell us about that. >> thank you, gerri, it's good to be back. housing is the most important issue facing the country got almost no attention in the campaign. i think there are a couple of

reasons why the candidates did everything they could not talk about housing. the housing market has started to recover. prices are up, construction is rebounding. gerri: but we have a long way to go. the real problem is that so many people can't get out from under these mortgages. you mentioned that the president has a refinance program. but let's face it. it has precious little traction with americans out there. but things don't seem to want to play. they are slow to the party. what is the likely impact for the federal government on housing? will be a recovery that starts from the ground up and not the top down? >> there is a long way to go. underwater borrowers is one thing. foreclosure inventory is another thing. it is a challenge to the people going through the process and to the local markets because the foreclosures will wait on home

prices. gerri: there is a long time about talking about getting rid of them, making the right solution to the problem. we think it is? >> that is a long-term question that obama and future administrations will have to deal with. right now, the government is involved in guaranteeing and investing an investing in a vast majority of new mortgages. the transitions are so important. you can just take the government out of housing suddenly because the mortgage market would come to a halt. the biggest question is what happens with mortgage regulations at the end of january? new rules will be issued around what they deem a borrower able to repay. it could have to do with what banks are willing to write. gerri: do think that will make a big difference to consumers? they are selling it as you're going to have this

misinformation yoo didn't have before. but we had a boom in mortgages when they were supposedly completely difficult to understand. what you think will be the real impact of that? you say that things will decide what kinds of loans. what is the real impact? how might it change how they went? >> the real impact will be whether it is easier for consumers to get a mortgage or not. right now, mortgage lending standards are as tight as they have been throughout the housing crisis. the credit score remains high. surveys of loan officers are not getting any easier. some of the barriers to homeownership, consumers also need to be able to get a mortgage. but that doesn't change, it will be hard for people who want to become homeowners to do so. gerri: do you think the banks will make it harder to get loans on the basis of these new regulations? >> is that what you're saying? these new regulations could have a big impact on the loans and

how they originate. also, how much they have to keep on their books or hold against those loans. again, we don't know exactly what the mortgage standards are going to be and what the standards will mean either for legal or financial responsibility. but banks things are very concerned about what they might mean. and that will influence what the mortgage market looks like after january the. gerri: thank you so much for coming on tonight. we appreciate your time. gerri: covering all of your big investments from housing to cars. are you sick of your car commute? unless you live in the following places, it could be worse. a look of the cities with the @%rst traffic. number five is our nation's capital, washington dc. interstate 495, packed with drivers coming from maryland or virginia. drivers spend 45 hours sitting in traffic every year. number four is inconsistent. the golden gate bridge is a constant headache for those in

california. number three we head down south to the pacific highway to los angeles. 13 million commuters can you into the city every day. 80% drive and 56 hours spent in idle cars. and of course, new york city, the big apple. they spent 57 hours or two and a half day sitting in traffic, especially if you're trying to get out of town on a friday afternoon. the number one worst city for traffic -- or not to believe this -- honolulu, hawaii. unbelievable. hawaiians would spend an average 50 hours a year. tuesday afternoons are the worst grades and stay on the beach. still to to come, my "two cents more". coming up next, forget u.s. treasuries. some are saying there is a new safe haven for investors looking to stash their cash. we will tell you where it is coming up next

gerri: the new place many investors are stashing their cash. some are calling it the new safe haven. we will get the facts and two minutes

gerri: in focus tonight, talk of a new safe haven for investors looking way to stash cash. somewhere other than uncle sam's pocket. a recent article pointed out that money is pouring in to highly rated u.s. corporate bonds at an even faster pace than treasury debt. that is according to a tractor pull. let's ask our expert. anthony, thank you for coming on

tonight. admittedly, it seems like a small phenomenon. but it's troubling when we look at another potential downgrade of treasury. that show folks what's going on here. are our our corporate bonds be safe haven for investors? if you look at the yield, the yields plummeting, following close to the treasury yields. that would indicate that people think they are superstate. would he say that? >> they are not a safe haven replacement for treasury. gerri: why not? why not? >> at the end of the day you cannot replicate what you have in the treasury market.

deep liquid market, but at the end of the day, there is only for aaa rated corporate bonds. you have about 22 aa rated corporate bonds. just not enough of a market there to make it a true safe haven alternative. gerri: you're saying there's not enough of them out there. that is one thing. does that tell you about the expectations of investors when they opt for this corporate debt rather than treasury debt. are there concerns about treasury that level is building where that the debt will be downgraded again? >> well, treasures are no doubt very expensive. exxon and johnson & johnson also very expensive. yes, you can use those credits. but the last two days in the marketplace have been a very good example. in the event of a true light of safety committee will see them

perform. now, you do want to be invested in invested great corporate member. gerri: the way this whole thing is structured. i'm wondering if they want to be invested in exxon and not the u.s. government. what do you think? >> for a percentage of investors, that makes sense. but there's not enough to go around. you have to look at the broader market and the fed is driving a lot of this. driving investors into those corporate bonds that don't have much alternatives. the bond market is shrinking. gerri: anthony, thank you for coming on tonight. it is an interesting story to see how the trend grows.

>> let's just say that treasuries have a fiscal crisis. the treasury is still not going to the ball. it will probably ramp up things to pay off that process. [laughter] gerri: that is the problem right there, anthony. thank you for bringing it up. thank you for coming on, we appreciate your insight. we will be right back with the question of the day and my "two cents more" on a copy controversy. stay with us. [ male announcer ] at scottrade, we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations,

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gerri: president obama and the leaders of the divided congress are vastly ffcing the fast approaching fiscal clef. we need to drive off the cliff to get the country back on track, and others say it will create 2 million in job losses and the economy will go into a great big recession. i guess you can guess what i think. what do you think? here is where your posting. yes. we should drive off of a cliff and then to a rebirth. it would have to be one heck of a rebirth. and to step up and show that we can beat this the irresponsible and act like adults. we ask the same question on gerriwillis.com. 65 percent of you said yes and 35 percent said no. here are some of your e-mails. nancy from wisconsin rights, why is more not being done to stop voter fraud? why the democrats fight voter i.d. lost? our entire system is so corrupt and manipulated. what is so few people question or challenge it? interesting.

and can from arkansas says, the chicago crew has to be breathing a sigh of relief that romney did not hang the libya mess around obama's neck. obamacare been on the issue of trust, and this goes straight to it. romney was not the sharpest knife in the drawer. wow. thank you for that. finally tonight, there could be a controversy brewing and starbucks. now, according to reports, wholesale coffee prices are you falling, are plummeting, down 30%. to the usual supply and demand. brazilian coffee growers we will harvest more than six and a half billion pounds this year, a record, and one-third of the world's coffee is grown in brazil. if you think that means the price of your latte is going down, think again. starbucks is increasing the price by around 1% and packaged copies 17%. dagen down at me while cutting prices by 6%. they raced 23% last year. starbucks is not known for cheap